COMSTOCK TOWNSHIP — A new 83-unit low-income housing complex has been proposed for the corner H Avenue and 26th Street, near the Meijer store in Comstock Township.

Representatives from MAVCON Properties of Kalamazoo gave a presentation to the Comstock Township Board of Trustees on Monday, and they asked for approval of a federal Payment in Lieu of Taxes (PILOT) program to help fund the project.

MAVCON Business Advisory Group President James Dally said the 5-acre parcel that would take in the eight, three-story buildings was purchased five years ago.

Joe Agostinelli, vice president of government affairs and economic development for MAVCON, said the workforce housing would meet the needs of people who fall below the median individual income level of $25,600 in Kalamazoo County, but securing approval as a PILOT program would be essential.

“This (proposal) is sort of a make-or-break issue for the project,” he stressed. “It’s utilized all over the state as a way to get these workforce housing projects off the ground. We would hold rental rates at income qualified levels... This would fill the need for affordable housing in the area, but increase property taxes from the current level.”

Under PILOT guidelines, the owner of the housing units would pay a certain percentage (customarily 4 percent) of its restricted rental income to the local government instead of property taxes in order to offset infrastructure costs such as sewer and water.

Township Supervisor Tim Hudson said MAVCON needs to know whether the township would be interested in granting the PILOT program, otherwise, the project would not proceed further.

Trustee David Burgess said, “I’m excited about designing housing for working people,” but he also asked about the possibility of a mixed-income housing development.

Agostinelli replied, “There is a not a huge market for mixed-income housing and we couldn’t use PILOT for that.”

The program, administered by the Michigan State Housing Development Authority, is implemented for 15 years and then re-evaluated.

“Then we have the option of going back for another request (for renewal),” Agostinelli said. “It depends on what the market and the needs are at that time.”

Hudson said if Comstock Township approves the PILOT program, the project also must deal with a rezoning issue for the property, which would start with site plan review by the Planning Commission.

The supervisor noted the township approved a PILOT for helping to fund a senior citizens’ housing project in 1993. It also was noted that Richland Township last month agreed to continue the PILOT project for the Meadows housing development.

Hudson told Agostinelli and Dally the township would try to let them know of its decision as soon as possible.